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franfurt

06/07/08 5:43 PM

#9097 RE: moxa1 #9095

"...If Quanta wins as I understand it we may not be able to approach these downstream users as infringers, and our only recourse would be to sue manufacturers..."

moxa, why is this such a big deal? This has been discussed time and time again. If PTSC/TPL end up negotiating with, or having to sue only manufacturers, the license fees will be proportionately larger than previous signings to compensate. Do you think the manufacturers would rather litigate than pay a bigger fee? Maybe they would, but with the Markman and the hoped for positive USPTO re-exam results, do you think anyone's looking forward to prosecution and perhaps paying three times as much in damages as they would paying a license fee, albeit larger to compensate for all the other missed opportunities downstream? This is what ehwest keeps missing, or refusing to address, on RB and the Yahoo Group board.

Anyway, GLT you and other longs.
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Joda

06/08/08 8:30 AM

#9102 RE: moxa1 #9095

So what does that do to our investment here?
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centurycom

06/08/08 3:58 PM

#9106 RE: moxa1 #9095

Moxl,

I think TPL may have taken the future supreme court case into consideration, but I don't feel it was the reason for the settlement Vs. going to trial. 1) Judge Ward does not have a history of staying cases. He prefers to settle the issues. He would not stay our case for validity purposes, hence our hesitation to go to trial, when considering the advantage that an exparte re-exam has over trial. I don't think he would have stayed for the defendents in regards to a future case. Especially without contingencies.2) I believe TPL when designing their licensing plan took into consideration the exhaustion doctrine and I believe it would hold up under srutiny. Below is a post I previosly made on the subject:
AJMO

Re: Quanta, etc...
Posted by: CenturyCom on May 11, 2008 08:48AM

Re: Quanta, etc...


I know we have discussed this before, but I believe TPL's licensing scheme would hold up to scrutiny. Does anyone know if LG charged ongoing royalties on both tiers?

I can't see TPL developing this scheme, which they did for obvious reasons, and then cave to the J's because of it. This would definately affect all future licensing revenues, so why settle and not go to trial if this indeed was the cause of the settlement. I just find it hard to believe. If you only charge the end users with infringment, then the intial infringers are off the hook. If you only charge the manufactures, then they bare the full burden of the whole industry. You can't have your cake and eat it too? ( or can you?)

From TPL site: "The MMP Portfolio Licensing Program therefore focuses licensing requirements and royalty collection on the finished "system-level" product. A royalty-free MMP Portfolio license is also available to manufacturers of chips and other unfinished goods